DeFi

said it before, will say it again: flatcoins are the most underrated idea in crypto

building @yup

try crossposting to farcaster and twitter at yup.io . join /yup

Stablecoins that peg to the CPI-adjusted dollar rather than simply the dollar, essentially inflation resistant. This already exists and is successful just very hard to market

Assuming you could automate the value change of one token according to the CPI and guarantee the adjusted value exchange, how is the CPI the yard stick here? And whose CPI is the right one?

I think the math is CPI % change = Flatcoin % change in dollars. If the CPI goes up by 3% in the last month the new peg becomes 3% more than what it was the previous month. 

FPI is an example of a flatcoin that tries to achieve this. Launched in 2022, pegged to $1.11 right now 

In most cases projects use the CPI-U via chainlink and plan on migrating to their own CPI calculation over time

This is the alt account of Sister Hazel. Writings at https://powerlaw.systems. Building https://testnet.uvio.network. 

Thanks for sharing. I heard of the FPI experiment a while ago. 

What I do not understand is where the required surplus of money is coming from when the index reprices the exchange rate of the token upwards. 

And my point above was basically like, your CPI is not my CPI so we agree on some wrong version of it while some government screws with the composition eventually anyway. I don't know what to make of that.

I think the math is CPI % change = Flatcoin % change in dollars. If the CPI goes up by 3% in the last month the new peg becomes 3% more than what it was the previous month. 

FPI is an example of a flatcoin that tries to achieve this. Launched in 2022, pegged to $1.11 right now 

In most cases projects use the CPI-U via chainlink and plan on migrating to their own CPI calculation over time

https://docs.frax.finance/frax-price-index/overview-cpi-peg-and-mechanics